Who Owns Pakistan - Yimg

close down the Ittefaq Foundary. In both cases CBR was used by them to issue
SRO;s for personal ends and settling personal scores.
The Case of Indus Toyota Motors, The Tug of War Between Bhutto
and Nawaz
The Indus Toyota project is a clear case of politicking between two main political
parties and their govts but for reasons known only to a few, both are reluctant to
talk about the real bone of contention.
The Indus Toyota project sponsored by the Habib group was sanctioned by
Benazir govt in 1988. It was meant to start progressive manufacture of Toyota
Car in Pakistan but immediate effect of the sanction of the project was transfer of
franchise for import of Toyota from State owned Pakistan Automobile
Corporation (PACO) to the house of Habib yeilding them the windfall revenue of
500 dollars for every Toyota imported into Pakistan.
Before nationalization the Toyota franchise was held by Monnoos and obviously
this was a big coupe managed by Habib since several other leading groups
including the House of Ittefaq were flexing their muscles to enter the auto
industry. But within months of coming into power in 1990, Nawaz govt cancelled
the license of Indus Motors Project and demanded of the Toyota Motor Company
of Japan to restore the franchise to PACO which had lost the main source of
revenue. The matter was resolved only after the intervention of Japanese
Embessy and the visit of a delegation of Toyota Company from Japan.
Apparetly the matter has been resolved. But in the 1993-94 budget, govt
drastically reduced the import duty on completely built up (CBU) cars, thereby
completely upsetting the feasibility of Toyota plant. Fortunately for Habib, Nawaz
Sharif resigned in August 1993 and general elections brought Benazir in power.
On January 12, 1994, within two months of coming into power, PPP govt banned
the import of reconditioned cars and drastically reduced the import duty on
Completely Knocked Down (CKD) kits for cars, thus accruing windfall gains of
billions of rupees to Indus Toyota Motor which was the only private sector car
assembly plant nearing completion at that time.
During first Sharif govt, PPP leaders were always accusing the govt of victimising
the House of Habib but with Benazir in power it was a turn of Muslim League to
accuse the govt unduly favouring the Habibs.
A " chronicle of failure, the PPP govt " released by Sartaj Aziz, on January 2,
1994 observed that " the decision of Economic Committee of the Cabinet on
January 23, 1994 reducing duty by 30% on CKD and restricting import of
reconditioned cars is meant to give tremendous benefits to certain local
assemblers of a particular brand whose owner is personal friend of Asif Zardari.
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